Nigerian Journal of Risk and Insurance

The Impact of Sustainability on the Performance of Family-Owned Business in Nigeria

Hameed Omotola OJODU — 2025-12-26

The paper examines the impact of sustainability on the performance of family-owned businesses (FOBPs) in Nigeria, and it evaluates the influence of economic and environmental responsibility on FOBPs. The study employs a survey research design and a study population of 11,643 small-scale businesses operating in Lagos State, Nigeria. Multi-stage sampling was adopted for the study; the sample size was determined using Raosoft's sample size, and 387 samples were selected. The study adopts a regression statistical technique analysis to test hypotheses using SPSS. The findings revealed that economic responsibility has a significant influence on family-owned business performance; (ECOR) (0.6351) is positive and significant at 5%, showing that ECOR has a positive and significant impact on FOBP and environmental responsibility; (ENVR) (0.6296) is positive and significant at 5%, showing that ENVR have positive significant relationship on FOBP. The combine effect has similar results. Hence, the study revealed that FOB operators need to be more concerned about improving its economic and environmental responsibilities to fulfill its obligations.

Underwriting Risk and Performance in the Non-Life Insurance Sector in Nigeria

Akeem Bamidele AGBOOLA — 2025-12-26

Insurers face underwriting risk in their basic operations, which, if inadequately managed, may threaten their profitability. This study aimed to examine the impact of underwriting risk on the performance of publicly traded non-life insurers in Nigeria. This research employed an ex post facto design, utilising data spanning 13 years (2012-2024) from the audited annual reports of 11 insurance companies. The random-effects regression model indicated that underwriting risk has a significant negative impact on underwriting profit and a significant positive impact on the expense ratio. Insurance businesses are advised to enhance their risk assessment frameworks, implement actuarially robust pricing models, and further develop their data analytics capabilities. They must institutionalise rigorous underwriting criteria and enhance internal monitoring systems to mitigate risk buildup, while focusing on cost-containment techniques such as process automation, efficient claims administration, and the elimination of administrative overheads. By using these measures, they can improve underwriting profitability, minimise cost inefficiencies, and secure long-term financial sustainability in a progressively competitive and uncertain insurance market.

Actuarial Analysis of Historical Mortality Trends in Nigeria and Their Implications for Annuity Valuation

Olamide Eniola PATRICK — 2025-12-26

This study analyses historical trends and patterns in age-specific mortality in Nigeria and their actuarial implications for annuity valuation. Using secondary data from the United Nations World Population Prospects (2024 revision), the study applied descriptive and trend analysis to age-specific death rates and life expectancy across selected ages from 1960 to 2024. Descriptive statistics, graphical trends, and comparative assessments were used to evaluate improvements in mortality by age and gender. The results show a consistent decline in mortality rates over time, with the fastest improvements observed among children and young adults, and slower reductions among older adults. Female mortality rates remained consistently lower than those of males, reflecting global longevity patterns. These findings indicate that longevity risk is increasing for pension and annuity providers as Nigerians live longer. The study concludes that periodic review of mortality assumptions is essential for accurate pricing and reserving. It recommends integrating actuarial analysis into national mortality monitoring to strengthen the financial sustainability of life-contingent products.

Risk Perceptions of Motor-Insurance Fraud in Nigeria: Insights From Industry Experts

Olatokunbo SHOYEMI — 2026-01-12

Motor insurance fraud poses a critical threat to the insurer solvency and market integrity, particularly in developing economies where regulatory enforcement and data infrastructure remain weak. In Nigeria, both opportunistic exaggerations (“soft” fraud) and deliberate schemes (“hard” fraud) distort claims performance and erode public confidence in insurance. This study investigates how industry professionals perceive the scale and consequences of fraud, drawing on behavioural and institutional perspectives. Using an expert elicitation methodology, data were obtained through a structured questionnaire administered to 120 insurance experts, including underwriters, claims managers, brokers, and regulators. The findings reveal that systemic weaknesses, such as weak enforcement and cultural tolerance for minor deception, amplify fraud risks. Respondents viewed soft fraud as more frequent but harder to prove, while hard fraud was perceived as less common yet more financially damaging. These results extend existing literature by providing context-specific, empirically grounded evidence from a sub-Saharan African market where reliable claims data are scarce. The study contributes to risk research by demonstrating how perceptions of fraud are shaped by institutional capacity, and it offers actionable implications for enhancing regulatory oversight, improving insurer resilience, and strengthening governance frameworks in emerging insurance markets.

Market Risk Dynamics and Financial Performance of Life Insurance Companies in Nigeria

Sewhenu Francis DANSU — 2026-01-09

This study examined the relationship between market risk factors and the financial performance of life insurance companies in Nigeria using panel data from thirteen licensed life insurers over the period 2012–2023. An ex post facto research design was adopted, and a census sampling approach was employed. The Two-Stage Least Squares (2SLS) estimation technique was applied to address endogeneity concerns, alongside simple and multiple regression analyses to test the hypotheses. The results indicated that exchange rate volatility has a statistically significant positive effect on financial performance, whereas interest rate risk and equity market volatility do not individually have significant effects. However, when examined jointly, these market risk variables exert a statistically meaningful influence on return on assets (ROA). The study concluded that enterprise risk management (ERM) frameworks incorporating integrated risk management strategies are essential for life insurance firms operating in volatile emerging markets. Insurers should develop comprehensive risk management strategies that address exchange rate fluctuations, interest rate movements, and equity market uncertainties through portfolio diversification, asset-liability matching, and dynamic hedging strategies.

Health Management Practices and Health Insurance Uptake among Lagos State Civil Servants

Olufemi Adebowale ABASS — 2026-01-14

Health insurance is a veritable mechanism for managing health-related costs. Despite its benefits, the uptake of health insurance in Lagos State still remains low. The study examined the effect of health management practices on the uptake of health insurance among Lagos State civil servants. A survey research design was adopted. The population was departmentalised into demand (civil servants) and supply (health care providers). The sample size for the demand was three hundred and ninety-nine (399), and the supply was one hundred and ninety (190), using Taro-Yamane sampling sample size determination. Multistage sampling techniques were adopted. Regression analysis was applied to test the hypotheses. The results indicated significant relationships between health insurance literacy, coverage breadth, and service quality, and health insurance utilisation, demand for health insurance, and access to healthcare, respectively. The study concluded that improved health management practices, such as health insurance literacy, coverage breadth, and service quality, would increase health insurance uptake among Lagos State civil servants. Therefore, health providers in Lagos State should add ancillary benefits to health coverage. The government and its agencies should further create awareness on the usefulness and benefits of health insurance plans.